AllianceBernstein Holding LP (AB), the asset manager that is majority-owned by AXA SA (OTCQX:AXAHY),
still just can’t get a lot of love on the Street. Although the company
has continued to build its assets under management and margins are
improving, progress has been inconsistent and AXA likely rattled
investors with a major management shake-up earlier this year.
AllianceBernstein continues to make progress in areas like its equity
fund performance, but investors still seem reluctant to believe that the
company can rebuild itself back into a leading money manager.
Even
with a longer, slower ramp toward higher margins, AB units still look
undervalued to me and they continue to offer a high yield (over 8% as of
this writing). I understand that partnerships aren’t for everyone and
the influence/control of AXA is another valid issue, but the shares
continue to look undervalued to me for patient income-oriented
investors.
Read more here:
AllianceBernstein's Unsteady Progress Continues To Cap The Valuation
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